1. Chapter 10 Organizing Information Technology Resources
Management Information Systems, 4th Edition

2. Learning Objectives
Describe the ways in which information technology personnel are deployed in organizations
List and explain the advantages and disadvantages of various personnel deployments
Explain the importance of collaboration between IS managers and business managers, and describe the relationships between the two groups
Contrast the advantages and disadvantages of charge-back methods for IS services
Describe career paths and responsibilities in the IS field
Management Information Systems, 4th Edition

3. Management of Information Technology Resources
Centralized Management
Staff positions and departments in strict vertical hierarchy
Control of organization in few hands
Decentralized Management
Delegates authority to lower-level managers
IS often follows management pattern
Management Information Systems, 4th Edition

4. Centralized vs. Decentralized Management
Advantages of Centralized IS Management
Standardized hardware and software
Efficient administration of resources
Effective staffing
Easier training
Common reporting systems
Effective planning of shared systems
Easier strategic planning
Efficient use of IS personnel
Tighter control by top management
Management Information Systems, 4th Edition

5. Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition

6. Centralized vs. Decentralized Management (Cont.)
Advantages of Decentralized IS Management
Better fit of ISs to business needs
Timely response of IS units to business demands
Encouragement of end-user development of applications
Innovative use of ISs
Support for delegation of authority
Less competition for resources
Management Information Systems, 4th Edition

7. Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition

8. Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition

9. Organizing the IS Staff
Central IS Organization: A corporate IS team over all units
IS Director oversees several departments
Usually involved in every aspect of IT
Often includes a steering committee
Often easier to integrate an IS plan in a centralized IS organization
Management Information Systems, 4th Edition

10. Organizing the IS Staff (Cont.)
Management Information Systems, 4th Edition

11. Organizing the IS Staff (Cont.)
Dispersed IS Organization
Each unit fulfills its IS needs individually
Each business unit has one or several IS professionals
Funds for development and maintenance of unit’s IS own budget
Decisions made independently
Management Information Systems, 4th Edition

12. Organizing the IS Staff (Cont.)
Management Information Systems, 4th Edition

13. Organizing the IS Staff (Cont.)
A Hybrid Approach
Small companies use the central approach
Midsize and large use elements of central and decentralized approaches
Handled according to the position of the highest IS officer in the organizational structure
Management Information Systems, 4th Edition

14. Business Managers’ Expectations of an IS Unit
Broad understanding of business activities
Flexibility and adaptability
Prompt response to the information needs of the business unit
Clear, jargon-free explanation of what technology can and cannot do for the unit
Management Information Systems, 4th Edition

15. Business Managers’ Expectations of an IS Unit (Cont.)
Candid explanations of what information systems can and cannot do
Honest budgeting
Single point of contact
Management Information Systems, 4th Edition

16. IS Manager Expectations of Business Managers
Business planning
Systems planning
Systems selection or development
Participation and partnership
Management Information Systems, 4th Edition

17. Chargeback Methods Two ways to treat cost of IS function
Part of overhead cost: General shared expense
Chargeback system: Units charged for services
Service Charges
Staff hours
Computer hardware
Computer time
Management Information Systems, 4th Edition

18. Chargeback Methods (Cont.)
Service Charges (cont.)
External storage space
Departmental Web site space
Desirable Chargeback Features
Accountability
Controllability
Timeliness
Congruence with organizational goals
Management Information Systems, 4th Edition

19. Chargeback Methods (Cont.)
Service Charges (cont.)
Chargeback Criticism
Expense may discourage IT initiatives
High rates can be frustrating
Overhead Expenditures
Research and development
Corporation-wide data communications
Management Information Systems, 4th Edition

20. Careers in Information Systems
The Systems Analyst
Analysis of business needs and ISs
Setting up of business applications
Designing new ISs and maintaining existing ISs
Analyze system requirements from user input
Documenting efforts and system features
Providing specifications for programmers
Agents of change
Good persuasion and presentation skills
Management Information Systems, 4th Edition

21. Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition

22. Careers in Information Systems (Cont.)
Database Administrator (DBA)
Responsible for data architecture of an organization
Planning and design
Physical organization and storage
Logical organization & Schema development
Data dictionary development and maintenance
Security measures for access and proper use
Failure recovery and back-up measures
Updates and data integrity
Interfaces of internal databases with other ISs
Database personnel management
Management Information Systems, 4th Edition

23. Careers in Information Systems (Cont.)
The Network Administrator
Responsible for computer networks
Acquisition
Implementation
Management
Maintenance
Troubleshooting
Assesses future needs of the business
Management Information Systems, 4th Edition

24. Careers in Information Systems (Cont.)
Webmaster
Creates and maintains Web site and intranet pages
Must know Web technology, business strategy, security
Chief Information Officer (CIO) and Chief Technology Officer (CTO)
Oversees IS research and development
Oversees IS infrastructure development
Serves as chief technologist
Serves as chief agent of change
Management Information Systems, 4th Edition

25. Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition

26. Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition

27. Careers in Information Systems (Cont.)
The Chief Security Officer
Reports to the CIO or the CEO
Security is sometimes classified as a business issue, not an IT issue
Major challenge is misperception that security is an inhibitor rather than an enabler to operations
Management Information Systems, 4th Edition

28. Careers in Information Systems (Cont.)
Chief Knowledge Officer (CKO)
Responsible for finding strategically important knowledge resources
Accumulates, organizes, and retrieves information
Chief Learning Officer (CLO)
Independent Consultant
Offers services to companies that lack qualified personnel for specific tasks
Management Information Systems, 4th Edition

29. Ethical and Societal Issues Gasping for IT Skills
Demand Keeps Growing
Projected 2 million additional designers, programmers, and maintenance and repair workers needed over the next seven years
1.8 million computer engineers, computer scientists, and systems analysts needed by 2006
Ironically, high demand and benefits not attracting students to IT programs
Management Information Systems, 4th Edition

30. Ethical and Societal Issues Gasping for IT Skills
One Strategy That Worked
Irish government subsidized tuition for students in technological programs
Second largest exporter of software
60 percent of incoming university students enroll in technological programs per year
Management Information Systems, 4th Edition

31. Ethical and Societal Issues Gasping for IT Skills (Cont.)
Promoting National IT
Should government subsidize technological education?
Proponents: Benefits all society
Detractors: Objectionable intrusion on personal pursuits and allocation of tax money
Management Information Systems, 4th Edition

32. Summary
Information technology personnel can be deployed in different ways
There are advantages and disadvantages to different personnel deployments
Collaboration between IS managers and business managers is important
Charge back methods have advantages and disadvantages
Management Information Systems, 4th Edition